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Friday, January 30, 2009

The FTSE is currently indicating lower opening as traders wait for the release of the net consumer credit numbers. While the Bank of England can cut interest rates to help the economy, none of that really matters if the chartered banks are not going to lend that money to consumers or companies. If the numbers come out worse then expected, the FTSE is likely to end the week on a negative note.

Crude oil is set for a weekly decline of 11 percent, as concerns about a deeper U.S. recession outweighed OPEC pledges to increase output cuts. Later today, the US GDP numbers will be released, and analysts are expecting a fall of more then 5%. Should the number come out worse, oil could end the week below the 40 dollars per barrel level.